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HOUSE OF REPKESENTATIVES. 



2d Session. 



J Document 
1 No. 449. 



) 638 
U5 P2 
L919e 
:opy 1 



RECEIPTS AND EXPENDITURES UNDER THE ACT 
APPROVED FEBRUxiRY 25, 1919. 



MESSAGE 



FROM THE 



PRESIDENT OF THE UNITED STATES, 



TRANSMITTING 



PRELIMINARY REPORT COVERING THE APPROXIMATE RECEIPTS 
AND EXPENDITURES MADE UNDER THE ACT OF CONGRESS 
APPPvOVEl^ ix^BRUARY 25, 1919, APPROPRIATING $100,000,000 
)R RELIEF IN EUROPE. 



December 2, 1919. — Read; message ordered printed, and with accompanying paper 
referred to the Committee on Appropriations. 



iTo the Senate and House of Representatives: 

^s required by the act of Congress, approved February 25, 1919, 
""paajsmit herewith a prehminary report on the receipts and expen- 
ditures made u.iJ^i- appropriation of that act. 

WoouRow Wilson. 
The White House, Decemher 2, 1919. 



115 Broadway, New York City, 

November 2J^, 1919. 
His Excellency the President of the United States, 

The WJdte House, WasMngton, D. C. 
Dear Mr. President: I hand you herewith prehminary report 
covering the approximate receipts and expenditures made under the 
act of Congress approved February 25, 1919, appropriating $100,000,- 
000 for rehef in Europe, to be transmitted to Congress as required 
by that act. 

Owing to reasons stated in the report, it will be necessary to make 
an additional and final report when all the adjustments in outstanding 
credits and liabilities connected with the relief operations have been 
made. 

Yours, faithfully, 

Herbert Hoover. 



ES UI 



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2 RECEIPTS AND EXPENDITUEES Ul^DF.lt ACT APPROVED FEB. 25, 1919. 

PRELIMINARY REPORT OF RECEIPTS AND EXPENDITURES UNDER THE 
ACT OF CONGRESS APPROVED FEBRUARY 25, 1^19. 

I herewith submit the following preliminary report on receipts 
and expenditures from the funds provided under the act of Congress 
approved February 25, 1919, entitled: "An act for the relief of such 
populations in Europe and countries contiguous thereto, outside of 
Germany, German-Austria, Hungary, Bulgaria, and Turkey, as may 
be determined upon by the President as necessary." 

In explanation of tlie report there is attached hereto: 

(1) A table showing the preliminary estimate of expenditures 
from this appropriation and the countries to which the supplies 
purchased were sent. 

(2) A table showing tonnage of each commodity furnished each 
country on its general food and relief program from the appropria- 
tion. 

(3) A table showing tonnage of each commodity furnished each 
country for children's relief from the appropriation. All the values 
are given in round figures and are tentative for reasons given here- 
after, and may vary up to 5 or 10 per cent on the completion of the 
final statement. 

The expenditures on food shipments in Table 1 are roughly divided 
in the following proportions : " - * 

Per (Sent. 

F. 0. b. cost of food and other relief commodities at American ports 77. 37. 

Trans-Atlantic freight on above 20. 67 

Demurrage 1. 10 

Handling and transshipment in Europe 85 

About 88 per cent of the rehef supplies furnished were sold under 
contract to the various Governments in the relief areas. For all 
such sales these Governments gave their special treasury notes in a| 
form approved by the United States Treasury, bearing 5 per cent 
interest, due June 30, 1921, to June 30, 1924. It was impossible to 
obtain reimbursement in cash because the currency in the countries 
to which these supplies were sent was impossible to convert into 
foreign exchange, except in comparatively insignificant amounts. 
I give herewith approximate list of the notes of each Government, 
which we expect to turn over to the United States Treasury. 

1. Poland $57, 000, 000 

2. Czechoslovakia 6, 750, 000 

3. Armenia 10, 000, 000 

4. Russia 5, 000, 000 

5. Esthonia 2, 300, 000 

6. Latvia 3,000,000 

7. Lithuania 700, 000 

8. Finland 4, 000, 000 

Total 88, 750, 000 

The remaining 12 per cent of the supplies were donated in assist- 
ance to private organizations set up in each country under direc- 
tion of the American Relief Administration for the purpose of fur- 
nishing food on a charitable basis to undernourished children. For 
such supplies it was, of course, impossible to obtain reimbursement. 
This service has contributed greatly to stabilizing the situation in 

^. oi: ^'^ 
m .-.li 1920 



RECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. 3 

those countries, aside from the physical benefits to more than 3,000,- 
000 undernourished chiklren, to whom the war tlireatened serious 
and permanent injury. Certainly this service is one for which the 
name of America will always be held in deepest gratitude. 

In addition to the children's relief, the American Relief Admin- 
istration paid approximately S550,000 for freight and expenditures 
on old clothing contributed by the American Red Cross and the 
Commission for Relief in Belgium, which was transported to the 
liberated countries and distributed without charge. The character 
of this clothing is so varied and uncertain that it has been found 
most unwise to attempt any sale on a commercial basis, and as it 
goes to the poorest classes it is a proper subject for charity. 

The American Relief Administration also expended $530,000 on 
freight in transporting from France to Poland, Czechoslovakia, and 
Esthonia United States Army bacon which the Governments of 
these States were able to purchase on credit from the liquidation 
board in France. This is covered by the treasury notes of those 
countries. 

It should also ])e noted that a question remains unsettled with the 
United States Shipping Board regarding the freight charges. The 
President and the board have approved the policy of fixing these on 
a cost basis, but as yet no reduction has been made in the tentative 
rates of freight which were originally f^xed at considerably above 
this cost. 

The relief supplies purchased by the American Relief Adminis- 
tration were all of American origin, and none of the appropriation 
therefore was expended outside of the United States, except to some 
extent for local freight and handling charges in Europe. 

I regret exceedingly that it is impossible to submit at the present 
time an item statement of the receipts and expenditures. Although 
the commodities required for relief shipments were all purchased 
prior to July 1, 1919, marine workers' strikes in the port of New York 
delayed the sailing of the last relief vessels until August 25. It was, 
therefore, necessary to continue our accounting staff in Europe until 
these vessels had been unloaded 30 clays later. The transfer of the 
accounting forces and records from various countries to the London 
office for credit required further time and thence from London to the 
United States there was also serious delay by the strikes in England,, 
and finally the unloading of the records was long delayed in New 
York by the longshoremen's strike. Combination of the European 
and American accounts is now in process and will be audited before 
presentation. These delays, together with the complicated nature 
of the accounts, make it impossible to present an item statement 
of receipts and expenditures for some little time. At that time the 
final and complete report will be filed. The totals will not, I be- 
lieve, vary materially from those given in this report. 

Respectfully submitted. 

Herbert Hoover. 



4 RECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. 

Table 1. — Preliminary estimate of expendititrea of American Belief Administration, out 
of ^100, 000, 000 fund. 





Name of country to wliich 


shipped. 


Amount. 


Poland 


$56,900,000 
6,700,000 
10,000,000 
2 300 000 




Armenia 


Esthonia 


Latvia. . 


2, 900' 000 




Finland 


3,900,000 
4,600,000 


Russia . 










88,000,000 


Children's relief: 

Poland 


5 300 000 


Czechoslovakia 


2,900,000 
900,000 


Serbia 




Finland 


500,000 
600,000 


Esthonia 


Latvia 


Lithuania 


300;000 
100,000 

300 000 




Various countries: 

Freight in transporti 


ng old clothing bv Red Cross, 
in transporting old clothing cc 




Freight and expense 
in Belgium 


ntributed by Commission for Relief 


250 000 












12, 000, 000 


Grand total 


100,000,000 





RECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. 



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